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The adoption of Point-of-Sale (POS) platforms for financial transactions surged dramatically in 2024, with the total transaction value hitting N223.27 trillion, according to the latest data from the Central Bank of Nigeria (CBN). This represents a more than 100% increase compared to N110.35 trillion recorded in 2023, signalling a sharp shift in consumer preference toward digital and agent-assisted payments.
The volume of POS transactions also climbed from 9.85 billion in 2023 to 13.08 billion in 2024, a 32.7% year-on-year increase. In contrast, Automated Teller Machine (ATM) usage remained largely stagnant, with transaction volume inching from 1.012 billion to 1.022 billion.
Digital Payments on the Rise
The steady decline in ATM withdrawals underscores a shift toward more accessible and convenient payment channels. The total value of ATM withdrawals in 2024 was N29.12 trillion, a modest rise from N28.21 trillion in 2023, in stark contrast to the exponential growth seen in POS usage.
From January through December 2024, POS transaction values experienced consistent monthly growth. For instance:
- January: POS – N11.50tn; ATM – N2.15tn (down from N3.24tn in Jan 2023)
- June: POS – N19.57tn (up from N8.31tn); ATM – N2.45tn (largely unchanged)
- November: POS – N29.42tn; ATM – N3.35tn (highest monthly figure)
- December: POS peaked at N31.84tn, more than double the N13.20tn recorded in December 2023. ATM withdrawals also rose to N3.91tn.
This uptick reflects increased reliance on agency banking and mobile-based payment systems, especially in underserved areas.
Infrastructure Expansion and Regulatory Oversight
The proliferation of POS terminals across urban and rural communities has been driven largely by the rise of agency banking and fintech platforms, which now dominate over 70% of the POS agent network. However, the rapid growth has not been without challenges.
The end-of-year festive period saw widespread cash shortages, forcing consumers to depend heavily on POS agents who in turn hiked withdrawal charges by as much as 100%, demanding up to N200 for every N5,000 transaction. Most bank ATMs were cash-strapped, leaving customers with limited options.
The CBN responded by sanctioning nine Deposit Money Banks with fines totalling N1.35 billion for failing to ensure ATM cash availability. These included Fidelity Bank, First Bank, Zenith Bank, UBA, and others.
Surge in POS-Related Fraud
According to the FITC Fraud and Forgeries Report (Q1 2024), POS-related fraud cases rose by 31.12%, making up 30.67% of the 11,472 total fraud cases recorded. The increase in digital payment usage has unfortunately also created more opportunities for cybercrime and unauthorised transactions.
To counteract this, the CBN introduced new measures under its evolving cashless policy. These include:
- A daily cash-out limit of N100,000 per individual at POS terminals.
- A cumulative N1.2 million cash-out ceiling for POS agents per day.
- A weekly cash withdrawal limit of N500,000 per customer.
- Mandatory linkage of all agency banking transactions to float accounts with principal financial institutions.
- Real-time submission of transaction reports via the Nigerian Inter-Bank Settlement System (NIBSS).
- Oversight responsibilities assigned to principal institutions, with penalties for breaches.
Conclusion: Toward a Cashless Future
While ATM usage remains relevant, especially in high-cash-demand areas, the dramatic growth in POS adoption signals a decisive turn toward digital-first financial services in Nigeria. The shift is being driven by the need for convenience, wider financial access, and growing consumer trust in mobile and agent-assisted channels.
However, the expansion of digital infrastructure must be accompanied by stronger regulatory oversight, cybersecurity measures, and pricing transparency to ensure financial inclusion is both sustainable and secure.
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